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Sydney's Barangaroo site poses serious health risks to humans and marine life, say two new reports.

The reports were lodged in the Land and Environment Court on Friday by a coalition of community groups and local councils.

They show the level of contamination at the site of the $6 billion development poses a more serious risk to the health of people and aquatic life than previously indicated by the government and Lend Lease.

Toxic substances contained at the site include arsenic, cadmium, mercury, lead, cyanide and polycyclic aromatic hydrocarbons such as naphthalene, the reports claim.

Lawyer Kirsty Ruddock said the reports revealed the government had accepted assurances "as an act of faith" that Barangaroo would be cleaned up and the harbour protected.

"We will claim in court that the minister (Tony Kelly) failed to represent the public's interest by setting enforceable conditions that would have prevented the release of toxic chemicals into the surrounding air and harbour," said Ms Ruddock, who is representing the group Australians for Sustainable Development Inc.

Dr Wayne Davies, author of one of the reports, said he was particularly concerned with naphthalene levels - a result of former AGL gasworks at the site.

"My immediate conclusion is that using the development consultants' own modelling, the release rate for naphthalene has been underestimated by 36 fold," he told reporters in Sydney on Friday.

"This substance is not regarded as carcinogenic, but it can make people feel ill, even at concentrations that are not actually toxic."

Dr Scott Wilson said the chemicals could also effect marine life.

"There is a high likelihood for movement of groundwater contaminants off site into Darling Harbour which does pose a serious risk to the environment," he said in his report.

The Lend Lease development is aimed at rejuvenating the western shoreline of Sydney's CBD and making it into a global financial hub.

An amended concept plan was approved by the NSW government on Thursday, increasing floor space for two new buildings, including a controversial new hotel.

The reports say a "remediation action plan should" be central to government approval of excavation on contaminated land.